2007 Annual Report

Environmental and Energy Study Institute

educates Congress, builds coalitions, and develops innovative policies to protect the climate and ensure a healthy, secure, and sustainable future for America

Energy and Climate Program funding. EESI held a key Congressional briefing on the energy budget as well as briefings on the latest developments In 2007, energy and climate legislation became a hot bed of in geothermal energy, hydropower and ocean energy, and we activity. House Speaker Nancy Pelosi called for a legislative supported coalition letters. package for energy independence and created the Select Committee on Energy Independence and Global Warming to Subsequently, the House and Senate restored funding for address both US dangerous dependence on foreign oil and geothermal energy and hydropower. The final appropriations the looming threat of . The International included $20.0 million for geothermal technology (a four-fold Panel on Climate Change's Fourth Assessment Report increase over the $5.0 million enacted in FY 2007) and $10.0 brought significant media attention to climate change as did million for water power energy R&D (double the $0.5 million many new reports documenting acceleration of impacts from enacted in 2006), merging ocean and wave programs with climate change. hydropower into a new “water power” program.

At least 15 pieces of legislation related to climate change and Climate Legislation more than 170 bills on energy efficiency and renewable Numerous bills related to climate change were introduced in energy were introduced in Congress. Rep. Dingell (D-MI), the 110th Congress including legislative proposals from Chair of the House Energy and Commerce Committee issued Senators Lieberman and Warner as well as Senators a number of Climate Change Legislation Design White Bingaman and Specter. Chairman Dingell announced draft Papers to explore policy options. Dozens of hearings on proposals on carbon tax legislation and issued a white paper energy and climate were held. By December 5, the Senate on cap-and-trade. EESI forcefully conveyed to Members of Environment and Public Works Committee had favorably Congress and others the significant developments in climate reported the Lieberman-Warner Climate Security Act of science, RE/EE technologies and policy that had occurred 2007 (S. 2191) by a vote of 11-8, the first time that a bill through our highly regarded weekly Climate Change News, mandating economy-wide reductions in greenhouse gas our briefings and our many meetings with policymakers, emissions had been approved by committee. coalition partners and a host of stakeholders. We work independently and with coalition partners to raise awareness Policy of the real, immediate, and cost-effective benefits EE/RE FY 08 Energy Efficiency and Renewable Energy Budget technologies and policy can bring to reducing greenhouse gas When the President released his FY 08 budget request in emissions as well as addressing energy security, energy price February, EESI staff released an analysis, highlighting the spikes, public health, the trade deficit and a host of related impacts on energy efficiency and renewable energy issues. programs, as we do each year. Our annual budget analyses are widely used by the press, Congressional offices and the policy community. “Your input on efficiency measures and tax issues helped make these parts of the bill The President’s FY 08 budget request totally cut core more comprehensive and positive.” geothermal and hydropower programs and slashed many critical energy efficiency programs. EESI launched into action., urging Members to support a “Dear Colleague” letter For example, EESI worked with the Center for Small from Rep. Udall (D-CO) asking House appropriators to Business and the Environment (CSBE) on the role of small restore energy efficiency and renewable energy (EE/RE) business in passing CA AB 32,California’s precedent-setting climate change legislation. After a briefing last year, EESI and CSBE conferred with House and Senate Small Business Committee staff on the interrelationship of climate change, energy, and small business. These discussions led to committee hearings and legislative proposals, including bills addressing workforce education, small business investment and the incorporation of small business considerations into both the House and Senate energy bills and the farm bill.

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EESI and CSBE are now focusing attention on the hundreds presentation and discussion of “An Inconvenient Truth.” A of existing small-scale solutions to global warming – that are full list of EESI’s briefings are listed starting on page 8. successful, profitable and replicable – “silver buckshot.”

Tax Credits “I’m sure you guys know this based on the The renewable energy production and investment tax credits turn out at your events, but EESI does an were due to expire January 1, 2008, (short term and outstanding job bringing experts into the unpredictable credits undermine business investment). Extending these credits was a high priority and part of most of Congress. Please keep up the good work.” our discussions and conference presentations. EESI worked with Members of Congress and our coalition partners to Climate Change News extend Renewable Production and Investment Tax Credits, The distribution of Climate Change News continues to grow, the Clean Renewable Energy Bonds, as well as the efficiency reaching more than 2,000 subscribers, including every tax credits in the Energy Policy Act of 2005. These credits Congressional office, at the end of 2007. This weekly update were in the Senate and House tax packages, but were cut in reports news about climate change, whether it is scientific the final compromise bill. While a one-year extension for the literature, governmental or private sector actions, or production tax credit (PTC), investment tax credit (ITC), and conferences. Climate Change News receives excellent clean renewable energy bonds (CREBS) was passed (now set reviews from our Capitol Hill audience and is a useful way to expire January 1, 2009), such a short extension is to keep policymakers informed on a regular basis and to insufficient to create critical market certainty for investors. provide a real sense of momentum on the issue. We still have a long way to go. Other Publications Throughout the year, EESI responded to requests from • Climate Fact Sheet: Recent Polling on Public numerous Congressional offices for ideas, background Perceptions of Climate Change, April 2006-2007 information and technical assistance on their various bills. • Annotated climate bibliography

• FY 08 DOE Energy Efficiency/Renewable Energy Outreach/Collaboration Budget Highlights (2/6/07) Sustainable Energy Coalition (SEC) EESI was a founder of the SEC and serves on its Steering • FY 08 EPA Budget Highlights (2/6/07) Committee. Much of our energy policy development work is • FY 08 House Appropriations for Energy Efficiency/ done with SEC members. We believe that coalitions are Renewable Energy (6/29/07) necessary to develop and move sound policy initiatives. • Issue Update: FY 08 Appropriations for Renewable Energy and Energy Efficiency: House and Senate Vote EESI also served on the Planning Committee for the Tenth for Increase in Energy Efficiency/Renewable Energy Annual SEC/Congressional Renewable Energy and Energy (7/19/07) Efficiency Technology Expo and Policy Forum, an all-day event held in the Cannon Caucus Room on June 14, 2007. As Presentations in past years, EESI organized policy forums, with panels on To spread our message, EESI staff spoke at many different economic development, energy security, supply growth, and venues and events. For example, Carol attended small climate change. We also coordinated a series of “Dear dinners with Swedish, Norwegian, and Finnish foreign Colleague” letters regarding the various technologies and ministers, ambassadors and senior embassy officials. Carol their connections to national issues and concerns, including has been a participant in a series of climate summits such as jobs, competitiveness, energy security and climate change. a University of Michigan climate summit and was on a panel organized by Rosina Bierbaum May 8-10. Education Briefings The Energy and Climate program held 24 briefings in 2007. This included organizing a Congressional staff-only film

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Sustainable Biomass and Farm Bill policy whitepaper, The 2007 Farm Bill: Policy Recommendations for Integrated Renewable Energy Energy Program Production, requested by Sen. Lugar’s staff (R-IN). This white paper helped EESI shape the direction and of the EESI’s strategy is to have sustainably produced biomass-to- policy debate. Throughout the reauthorization process, we energy technologies such as biofuels and biopower, held numerous meetings with staff in the Senate and the substantively and politically, become a critical part of a House, responded to inquiries, provided advice to the staff of climate change mitigation strategy by integrating it into our the Senate and House Agriculture Chairmen, and tracked the energy/agriculture/forestry portfolios. energy titles in the bills as they made their way through

Congress. Although the new farm bill did not move forward EESI actively educated and built a broad network of in 2007, we experienced a significant achievement in that a stakeholders to capitalize on these legislative options. number of program ideas from EESI’s white paper were Implement and reauthorize the Farm Bill’s Energy Title, • included in Senate and/or House proposals. • Implement the national Renewable Fuels Standard, • Implement cellulosic ethanol and other biomass “EESI stands ‘heads above all!’ And this is a technology programs in Energy Policy Act of 2005, and direct result of your understanding of the • Expand research and development for biomass issues and fearlessness in addressing those technologies and feedstock diversification. issues publicly.”

Renewable Fuels, Consumer Protection, and Energy Policy Efficiency Act of 2007 Budget and Appropriations The major new Renewable Fuel Standard (RFS) calls for 36 Each year, EESI staff review and analyze the President’s billion gallons of renewable fuels by 2022 with a carve-out proposed budget when it is released in February. The for 21 billion gallons of advanced fuels (any feedstock but Administration’s FY08 proposed budget zeroed out the corn) and includes several environmental protections. The Biomass Research and Development Act of 2000 (Sec. 9008 bill also calls for a number of new studies on the impact that of the Farm Bill Energy Title) and proposed funding several this increase in renewable fuels will have on the environment important programs well below their authorized levels. EESI and the economy as well as additional research funds and produced and distributed an easy-to-understand analysis of infrastructure grants for biofuels. the proposed budget and its impact on a range of bioenergy programs. Throughout the budget and appropriations We tackled the need for a change in DOE’s administration of process, EESI informed and engaged individuals, the loan guarantee program. DOE was utilizing the 80 organizations, and Members of Congress in funding for percent loan guarantee language in EPAct’s Title 17, which is bioenergy programs. EESI’s coverage provided our network best suited for technologies like nuclear and coal with opportunities to respond and identified EESI as a (established), rather than the 100 percent loan guarantee resource for information. language in Title 15, needed by new technologies, (e.g., cellulosic ethanol). EESI worked with the cellulosic industry We scored a victory when DOE announced six awards for up on a Congressional letter to identify and correct the problem, to $385 million for the Integrated Biorefinery Demonstration which was in the Senate-passed energy bill. Projects (Sec. 932(d)) in the Energy Policy Act of 2007 - more than twice the original authorized amount. EESI began a Woody Biomass Initiative to explore and Furthermore, DOE announced that it will provide up to $200 develop woody biomass from forestry operations and million for 5 years to support the development of small-scale industrial residues as an emerging energy feedstock. In US cellulosic biorefineries, critical for companies with new addition to being a good source of clean domestic energy, technologies that require demonstration. increasing the use of low-quality woody biomass will help manage and restore forests in a sustainable manner and reduce Reauthorization of the 2002 Farm Bill the risk of wildfires, while helping to revitalize rural The Farm Bill reauthorization process was a major focus of economies in forest dependent communities. EESI in 2007, including the May release of our updated

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Our goal is to accelerate development of a sustainable wood- EESI staff. In August, Carol spoke in Brazil, at a Pace based energy industry. EESI brought together a diverse group University-sponsored conference on Biofuels and the of foresters, academics, NGOs, and civic officials, as well as Promise for Sustainable Energy. Carol addressed how those involved in the production of wood-based energy biofuels represent an important piece of a ‘sustainable’ products. The series of discussions on the future of wood- strategy that works in tandem with other policies to address based energy and sustainable forest management, explored the challenges of climate change and oil security – but are the obstacles and opportunities represented by wood-based not a silver bullet. In December, Jetta spoke in Berlin, bioenergy and elicited critical research needs and policy Germany, at the Agrofuels: Opportunity or Danger? A suggestions. Ultimately, EESI will educate Members of Global Dialogue on US and EU Agrofuels and Agriculture Congress through a series of Congressional briefings. Policies and there Impacts on Rural Development in North and South Conference sponsored by the Institute for Outreach/Collaboration Agriculture and Trade Policy, German Watch and the EESI continues to be a ‘go-to’ resource for information on Heinrich Boell Foundation . current federal legislation related to biomass. In recent months, new international stakeholders (Brazil, Sweden, Education Indonesia, India and Argentina) have begun talking with EESI Briefings about the rapidly changing policy landscape. We also have EESI utilized Congressional briefings to bring policy options supplied nonprofits, investment banks, private companies, and before Congressional offices. For example, EESI organized of course, numerous Senate and House offices with biomass- Harvesting the Farm Bill for Energy Security and Climate in related background research and information. For example, a conjunction with the 2020 Vision Education Fund. This staff Forest Service Biological Scientist called us looking for -only briefing showed Congressional staff how American information on bioenergy projects and contacts in the agriculture can be a major force in promoting renewable bioenergy field. A few months after we helped him, he sent energy and weaning us off fossil fuels. A complete briefing us a press release on the transition of a 1950’s coal-powered list can be found on page 8. steam plant to a biomass boiler at the Savannah River Site. BCO In 2007, EESI concluded work on two projects we conducted The e-newsletter BCO: Bioenergy, Climate Protection, Oil in collaboration with North Carolina Solar Center and the Reduction subscriber list grew substantially and at the end of New Uses Council. The Workable Incentive Systems for 2007 included almost 2,000 readers worldwide. EESI Biobased Products, Biofuels and Biopower provided a increased the number of issues from bi-monthly to eight framework that combines state level biofuel, biopower and issues per year and changed the format of BCO, giving it a bioproduct policies with complementary policies to help accelerate a bioeconomy. EESI also concluded a Biobased “wow...the new design looks great. getting Product Procurement Toolkit project, designed to help high marks from all. three cheers!!!” people purchase biobased products fresh new look and making it easier for readers to use. Media A wide range of media recognize our expertise on energy Other Publications policy and renewable energy technologies. Journalists from On more than 25 occasions, we distributed information on across the country including BioDimensions Chemistry and funding opportunities, appropriations, legislation and other Industry (London) and PBS Frontline have interviewed EESI biomass-related items of interest to the 3,161 individuals in about a wide range of biomass issues. EESI's Jetta Wong EESI’s Sustainable Biomass and Energy Network. serves as RenewableEnergyAccess.com’s biomass expert for Educating stakeholders on the opportunities and benefits of its “Ask the Experts” column. agriculture-based renewable energy production (biofuels, biomass, wind, solar, etc.) is an integral part of EESI’s Presentations mission. In 2007, EESI gave 19 presentations about agriculture and energy issues at meetings around the country and world. Of particular note are two international presentations made by

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Transportation and Energy reduce oil consumption through the use of biofuels that allow automakers to receive CAFÉ (Corporate Average Program Fuel Economy) standards credit for the production of flex- fuel vehicles. The idea gained traction with some This year, our transportation program increasingly focused provisions to conduct research. on ways to speed the incorporation of plug-in hybrid vehicles

into the US automobile market. Our newly redesigned and expanded transportation newsletter, Clean Motion, made its Education debut in January 2007. Additionally, our Sustainable Briefings Communities Program merged with Transportation to create EESI organized a number of transportation and sustainable the Transportation and Energy Program. communities briefings and events in 2007. For example, our Congressional event to commemorate the first Policy anniversary of the launch of the National Plug-in Partners Campaign attracted more than 90 people. Speakers Plug-in Hybrid Vehicles included Rep. Inslee (D-WA), Austin Mayor Will Winn, EESI focused much of our 2007 transportation work on and Sen. Hatch (R-UT), who announced that he was moving flex-fuel plug-in hybrid technology forward as a working with Senators Obama and Cantwell to develop bi- component of major energy legislation and appropriations partisan legislation to advance plug-in hybrid vehicles. A bills. EESI has been a successful leading partner in the Plug- full list of our briefings can be found on page 8. in Partners Campaign led by Austin Energy to convince

automakers that there is a viable market for flex-fuel, plug-in hybrid vehicles. EESI focused on showing Congressional “I find the information you folks provide offices how plug-in hybrid vehicles (PHEVs) could very valuable. This is a wonderful service revolutionize the transportation sector and suggested policy options to help bring them to market. By the end of the year, that you are offering. Thanks again. I several automakers had declared their intention to produce forward your EESI newsletter to many key plug-in hybrid electric vehicles in the next few years. people across the region. It is an excellent

resource.” EESI worked with Members of Congress and other policymakers on a number of plug-in policies and incentives Clean Motion ranging from local government demonstration programs to Our newly redesigned Clean Motion transportation e- R&D investments for battery storage improvements. We newsletter focused on policy updates, technology were happy to see that the final energy bill authorized several developments, success stories, grant announcements, and key provisions to promote electric-drive vehicles, although it other information relevant to deploying cleaner omitted an important tax package. We helped draft a multi- transportation technologies such as hybrids, plug-in stakeholder sign-on letter to all members of the House and hybrids and flex-fuel vehicles. Our subscriber base grew Senate in support of these tax incentives. EESI has been to more than 1,400 readers worldwide. working with a coalition of utility, automakers and vehicle

technology interests to re-introduce a tax incentives package Other Publications for electric vehicles in Congress next year. • FY 08 Transportation Budget Highlights, February 2007 Flex-fuel Vehicles • Senate Energy Bill Important Step But Mores Urgently EESI advocated policies to encourage automakers to Needed, December 2007 optimize the use of ethanol in flexible fuel vehicles. All • Hybrid Buses: Costs and Benefits factsheet, March 2007 cars, including flexible fuel cars, are optimized for the use of • EESI and National Plug-In Partners Comments on DOE gasoline. Due to lower energy content, use of E-85 (85 Draft Plug-In R&D Plan percent ethanol and 15 percent gasoline) in these vehicles • Transportation Policy Options Report results in decreased mileage per gallon. Optimizing these vehicles for the use of ethanol would reduce this energy Presentations penalty for those using E-85. It is, after all, the ability to EESI continued to serve as an information resource on issues of energy, fuels and climate change. In addition to

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the Scoping Symposium and Partner Dialogue mentioned 9. Most communities have not yet integrated energy above, EESI made presentations at two American Planning concerns into their zoning ordinances and Association national meetings, the Clean Cities Coalitions’ development review procedures. Transportation Energy Independence Days meeting, and the 10. Most communities do not yet offer incentives for Sacramento Region Clean Energy Showcase. energy efficient, green development, and most planners are not familiar with private market Outreach/Collaboration incentives for green building. EESI began in earnest its exciting three year project Planning Our Way to a New Energy Future, in partnership with the American Planning Association (APA) to help planners Utah Clean Cities Coalition better understand the connections between energy and This year saw a continuation of our joint, two-year project planning and integrate these principles into their work. The with Utah Clean Cities and the Utah-based National Energy project held a "Scoping Symposium" in Chicago on March 1- Foundation to develop a school bus idle reduction program 2, where a small, select group of national planning and energy under a contract with DOE. After extensive research on anti- experts provided direction for the project. A second national idling materials and resources, an idle reduction focus group survey (to follow-up an initial survey conducted in 2005) was was held January 30 to gather ideas and perspectives from 20 launched to assess planners’ capacity, knowledge and stakeholders, including state directors of public educational needs concerning the integration of energy and transportation, fleet managers, bus drivers, students, and climate issues with community planning. Our Partner engine manufacturers. The partnership developed a training Dialogue meeting, held June 2007 in Washington, DC, helped program for school bus drivers to be pilot tested in several inform a diverse group of 50-60 attendees about the wide school districts in 2008. Results will be documented, range of activities attendees were undertaking to address including gallons of fuel saved, reduced emissions and climate and energy and encouraged collaboration between project experiences, which then will be compiled to share partners. This partnership continues to build relationships with other school districts across the country. with organizations and individuals working on these issues. To travel 5 miles, the comparison is (for gas and mega- 10 Big Picture Points Gleaned from the 2005 and joules): 2007 Survey of Planners • A typical gasoline car (Camry as proxy) – 27 mpg or 1. Awareness of energy issues is increasing among 29.4 mega-joules (MJ) planners. • A hybrid car (Prius) – 55 mpg or 14.3 MJ 2. More planners have primary responsibility in their jurisdictions for developing energy plans and policies. • An electric car (Tesla roadster) – 135 mpg equivalent 3. More communities have or developing energy policy or 7.09 MJ statements or plans. • A bicycle – no gasoline or 0.97 MJ (human energy) 4. Climate change has become the top motivator for communities to address energy concerns, and citizen interest continues to be a major factor. Media 5. The biggest obstacles to moving forward on energy In addition to providing background for several articles, planning actions continue to be a lack of political EESI briefings were covered by , interest and the complexity of the issue. Providence Journal, Business Week, US News & World 6. Reducing demand through energy efficiency is the Report, Congress Now, EarthdayTV, RAIN media, BNA, most common tool that communities plan to use in Point Carbon, Energy Washington, E&E publishing/ addressing energy issues. Greenwire ARGUS Media, Jiji Press, Platts, Mitsui USA, 7. Planners know more about alternative energy topics San Jose Mercury News, Restructuring Today, and Inside and technologies than they did in 2005, but additional Energy, among others. Of particular note, EESI staff helped education is needed. Newsweek magazine with an article on “clean” 8. A growing number of communities are seeking out transportation, to show readers a comparison of energy used energy technology businesses as part of their economic by various forms of transportation. In response to our help, development strategy. the Newsweek staffer said, “Wow! [T]his is brilliant!”

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EESI Congressional Briefings Cellulosic Ethanol: Not Just Any Liquid Fuel – February 12 EESI’s Congressional briefing schedule for 2007 was • Tracy Nagelbush, rigorous; we organized a record-breaking 35 briefings! We Senior had great attendance at all of our briefings, averaging over Policy Advisor, 100 attendees each, exhibiting the strength of interest in our Rep. Inslee issues on the Hill and among other organizations, businesses, (D-WA) and media sources. In fact, many of our briefings were (House briefing standing-room-only, at times forcing us to turn people away only) at the door. Our briefing attendees included more than 700 • Eric Hill staffers, representing more than 220 different Spomer, President Congressional offices and Committees. CSPAN broadcast and CEO, our briefing, Climate Change: What Americans Think, and Catalyst Renewables Corporation an ever increasing number of website and blogs list and • Mike Muston, Executive Vice President of Corporate Development, Broin review our briefings for their readers. In our efforts to Companies provide high quality, easy-to-access information to a broad • Gerson Santos, Research and Development Director, Abengoa Bioenergy audience, we now post free audio recordings of almost all of • Michael Parr, Senior Manager, Government Affairs, Dupont our briefings on our website. State Energy and Low-Income Energy Programs presented in conjunction with the Northeast-Midwest Public Transportation and the Reduction of U.S. Senate Coalition, Northeast-Midwest House Petroleum Consumption – January 9 Coalition, and the Renewable Energy and the Energy • William W. Millar, President, American Public Transportation Efficiency Caucus – February 13 Association • Moderator: Ari Strauss, Legislative Director, Northeast-Midwest Senate • Linda Bailey, Senior Associate, ICF International Coalition • Deron Lovaas, Vehicles Campaign Director, Natural Resources Defense • William E. (Dub) Taylor, Director, Texas State Energy Conservation Council Office and Vice-Chair, National Association of State Energy Officials • Vaughn Clark, Director, Oklahoma Office of Community Development National Plug-In Partners Anniversary Celebration and Chair, National Association for State Community Services Programs – January 23 • Jo-Ann Choate, Maine State LIHEAP Director and Chair, National Energy Assistance Directors Association • Mayor Will Wynn, City of Austin

• Rep. Jay Inslee (D-WA) An Inconvenient Truth: Film Presentation and • Sen. Orrin Hatch (R-UT) Discussion – February 16 • Mike Jackson, CEO, Auto Nation • Dr. Michael MacCracken, Chief Scientist for Climate Change Programs, • Jon Wellinghoff, Commissioner, Federal Energy Regulatory Climate Institute, Washington DC, fellow of the American Association for Commission the Advancement of Science and member, EESI Advisory Board

• Ed Kjaer, Director of Electric Transportation, Southern California Edison Biofuels: From Basics to Barriers – February 26 • Melissa Lavinson, Director of Federal Environmental Affairs and • Dr. Jason Hill: Research Associate with the Department of Applied Corporate Responsibility, Pacific Gas & Electric Economics and Department of Ecology, Evolution and Behavior at the University of Minnesota, Twin Cities • Tim Dummer, Global Director New Markets, GE Industrial Automotive • Steve Griffen: Board member of the New York Farm Viability Institute

Reducing Greenhouses Gases from Transportation: • Samantha Slater, Director of Congressional & Regulatory Affairs, Renewable Fuels Association California Strategies under AB 32, the Global • Jill Euken: Industrial Specialist, Biobased Products, Iowa State University Warming Solutions Act – January 24 (ISU) Extension/CIRAS; Assistant Director, Office of Biorenewables • Alex Farrell, Director of the Transportation Sustainability Research Programs, ISU Center, University of California, Berkeley • David Bransby: Professor of Energy Crops and Bioenergy in the • Dan Sperling, Director of the Institute of Transportation Studies, Department. of Agronomy and Soils at Auburn University University of California, Davis • Roland Hwang, Vehicles Policy Director, Natural Resources Defense Council

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Geothermal Energy: Latest Developments for this • Reps. Lee Terry (R-NE) and Mike Doyle (D-PA) Co-chair, Distributed “Hot” Contributor to U.S. Energy Production – Energy Caucus March 1 • Robert Roche - Product Manager, Stationery Fuel Cells, UTC Power • Bernie Karl, Owner and Renewable Energy Advocate, Chena Hot Springs • Thad Ewald - Executive Director, Power Electronics and Global SCM, Resort, Alaska Cummins, Inc. • Karl Gawell, Geothermal Energy Association (GEA), Washington D.C. • Dick Munson - Senior Vice President, Recycled Energy Development • Jeff Tester, Professor, Massachusetts Institute of Technology (MIT), Massachusetts, and Chair of MIT assessment report: “The Future of Findings from the IPCC Working Group II Report: Geothermal Energy” Climate Change Impacts, Adaptation and • Roy Mink, U.S. Geothermal, Idaho and former DOE Geothermal Program Vulnerability – April 18 Director • Dr. Cynthia Rosenzweig, Research Scientist, NASA Goddard Institute Paul Thomsen, Manager of Public Policy, Ormat • for Space Studies

• Dr. Terry Root, Senior Fellow, Center for Environmental Science and Bioenergy in the Farm Bill: Policy Options for Policy, Conservation – March 8 • Dr. Roger Pulwarty, Physical Scientist, NOAA/Office of Oceanic and • Brendan Jordan, Biomass Program Manager at the Great Plains Institute Atmospheric Research • Loni Kemp, Senior Policy Analyst at The Minnesota Project • Dr. Anthony Janetos, Director, Joint Global Change Research Institute • Julie Sibbing, Senior Program Manager for Agriculture and Wetlands Policy at the National Wildlife Federation

Climate Policy: Carbon Taxes, Carbon Cap-and- Trade, and R&D as Means of Reducing CO2 Emissions – March 14 • Dr. Terry Dinan, Senior Analyst, Congressional Budget Office • Dr. James Barrett, Executive Director, Redefining Progress • Charles Komanoff, Co-Founder, Carbon Tax Center

Biofuels and Tortillas: A US-Mexican Tale of Chances and Challenges – March 16 • Victor Quintana, Professor of Social Communication at the Autonomous University of the City of Juàrez-Chihuahua and advisor to Peasants’ Democratic Front of Chihuahua • Alexandra Spieldoch, Institute for Agriculture and Trade Policy • Barbara Bramble, National Wildlife Federation Climate Change: What Americans Think – May 4 • Daniel De La Torre Ugarte, University of Tennessee Agricultural Policy • Dr. Jon A. Krosnick, the Frederic O. Glover Professor in Humanities Analysis Center and Social Sciences and professor of communication, political science, and psychology at Stanford University. Energy Efficiency and Renewable Energy: FY 2008 Budget Review – March 22 How Does Transportation Fit into Cap and Trade? • Scott Sklar, President, The Stella Group, and Chair, Sustainable Energy presented by 2020 Vision Education Fund in Coalition Steering Committee conjunction with the Environmental and Energy Study • Bill Prindle, Deputy Director, American Council for an Energy Efficient Institute and the offices of Senator Richard Lugar (R- Economy (ACEEE) IN) and Senator Joe Biden (D-DE) – May 11 • Peter Smith, Chairman, National Association of State Energy Officials • The Honorable Dave McCurdy, President, Auto Alliance (NASEO) and President, New York State Energy Research and Development Authority (NYSERDA) • John German, Manager, Environment and Energy Analyses, American Honda Motor Co., Inc. Distributed Generation-- Policy Options for an • Daniel Lashof, Deputy Director, Climate Center, Natural Resources Defense Council Energy Bill, presented in conjunction with The • Drew Kodjak, Executive Director, International Council on Clean Northeast-Midwest Institute and the Distributed Energy Transportation Caucus – March 27 • Moderated by Tom Z. Collina, Exec. Dir., 2020 Vision Education Fund

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Cap and Trade: It's Time to Start Digging into the • Lasse Nord, Norwegian Commission on Low Emissions: "How Norway Details presented by The Center for Clean Air Policy can reduce its emissions by 50-80% by 2050" – May 14 • Silje Schei Tveitdal, Political Advisor on Energy and Environment; Norwegian Parliament: "From oil economy to renewable energies" • Ned Helme, President, CCAP • William Christensen, Norwegian Ministry of Energy • Marty Spitzer, Director, Domestic Programs, CCAP • Svend Soeyland, Bellona: "CO2 sequestration - bridging technology • Managers of CCAP's domestic and international programs towards a renewable future". • Arve Thorvik, Vice President, EU Affairs, STATOIL: "Carbon Capture and Storage. Industrial solutions in the making" • Alden Meyer, Director of Strategy Policy, Union of Concerned Scientists: "Technological solutions to global warming" • Scott Sklar, President, Stella Group: Market Trends for Renewable distributed Generation and Smart Grids • Peter Repinski, UNEP: Energy efficiency: Green buildings • Moderator: Dr. Joseph Romm, Center for Energy and Climate Solutions: The Low Carbon Car of the Future

The Low Carbon Fuel Standard: A Climate Policy Solution for Transportation – June 5 • Rep. Jay Inslee (D- Congressional Fuel Cell Expo 2007--Fuel Cells: WA) Powering the Present...Securing the Future, • Alex Farrell, UC presented in conjunction with the US Fuel Cell Council Berkeley Professor and Co-Director of – May 15 Report "A Low- Carbon Fuel Standard High-Performance Green Buildings: A Look at for California" Their Benefits and the Role of Federal Policy – May • Roland Hwang, 21 Policy Director, Natural Resources • Robert F. Fox, Jr., AIA – Partner, Cook + Fox Architects LLP, designer Defense Council of the new Bank of America Tower at One Bryant Park, New York City • Michael Goo, • Mike Saxenian – Sidwell Friends School - the first LEED Platinum- Majority Counsel, US certified K-12 school in the world Senate Environment and Public Works • Rick Fedrizzi - President, CEO & Founding Chairman – U.S. Green Committee Building Council • Eric Swedlund, Deputy Director, World Environment Day 2007: Melting Ice - A Hot Office of Governor Topic? Presented in conjunction with the Royal Arnold Norwegian Embassy – June 5 Schwarzenegger • Ralph Moran, Director of West Coast Climate Change Issues, BP Terry D. Garcia, Executive Vice President, National Geographic Society • America • H.E. Knut Vollebaek, Ambassador of Norway • Bill Mansfield, Senior Advisor to the Executive Director, UNEP: Visual The Role of Advanced Hydropower and Ocean Evidence of Global Climate and Ecosystem Change Energy in Upcoming Energy Legislation – June 8 • Liv Arnesen, Polar Explorer: Exploring the impacts on the Arctic • Doug Dixon, Hydropower Program Technical Lead and author of environment "Assessment of Waterpower Potential and Development Needs", Electric • Will Steger, Polar Explorer: Report from his latest expedition, Global Power Research Institute (EPRI) Warming 101 • George Hagerman, Senior Research Associate, Center for Energy and the • Dennis Dimick, Executive Editor National Geographic Magazine: "The Global Environment, Virginia Tech Big Thaw - Ice on the Run, Seas on the Rise". • Wayne Krouse, President & CEO, Hydro Green Energy • Erik Assadourian, World Watch Institute: "Moving beyond the • Steve Brown, Director of Natural Resources, Grant County Public Utility consumer society" District • Moderator: Juliet Eilperin, Washington Post Staff Writer • Jeffrey Leahey, Esq., Senior Manager of Government and Legal Affairs, • Bill Wehrum, Acting Asst. Administrator for Air and Radiation, EPA National Hydropower Association

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The 10th Annual Renewable Energy & Energy • Chris Namovicz, Operations Research Analyst, Energy Information Efficiency Expo and Forum presented by the House Administration and Senate Renewable Energy & Energy Efficiency • Marilyn Brown, Professor of Energy Policy, GA Institute of Technology Caucuses in cooperation with the Sustainable Energy and Visiting Distinguished Scientist, Oak Ridge National Laboratory Coalition – June 14 • Richard Glick, Director, Government Affairs, PPM Energy • Dr. John Holdren, Teresa and John Heinz Professor of Environmental Policy, ; Director, Woods Hole Research Center; 2nd Annual National Summit on Energy Security President, AAAS (2006-2007) sponsored by 2020 Vision Education Fund and CNA • Scott Sklar, Chair, Sustainable Energy Coalition Steering Committee; Corp. with support from EESI and others – July 12 President, Stella Group, Ltd. • Carol Werner, Exec. Director, Environmental and Energy Study Institute, Why is Concentrating Solar Power Good for SEC Steering Committee America? – September 6 • Dr. Wolfram Krewitt, DLR German Aerospace Cntr, Stuttgart, Germany • Dr. Fred Morse, Senior Adviser, US Operations, Abengoa Solar, Inc. • David Hamilton, Director of Global Warming and Energy Programs, Kate Maracas, Managing Director, Energy Resources, Inc. Sierra Club • • Mark Wagner, Vice President Government Relations, Renewable Energy • Barbara Lockwood, P.E., Manager, Renewable Energy, Arizona Public Solutions, Johnson Controls Inc. Service Company • Brandon Seitz, Biotown, USA, Manager of Energy Division, Indiana • Joshua Bar-Lev, Vice President., Regulatory Affairs, Bright Source Office of Energy and Defense Development Energy

• R. James Woolsey, former Director of Central Intelligence; Vice President, Global Strategic Security Division, Booz Allen Hamilton, Inc. The Clean Water Act turns 35! The Next 35 Years of Clean Water: What will the Future Hold? • Kevin Rackstraw, Development Leader, Eastern North America, Clipper Windpower Development Company, Inc. Presented in cooperation with the Water Environment • Lisa Krueger, Vice President, Sustainable Development, First Solar Inc. Federation – September 19 • Jonathan Weisgall, Vice President, MidAmerican Energy Holdings Corp, • LaJuana Wilcher, former EPA Assistant Administrator for Water; CalEnergy (Geothermal) former Secretary, Kentucky Environmental and Public Protection Cabinet; Partner, English, Lucas, Priest & Owsley, LLP (moderator) • Julie Smith Galvin, Director, Corporate Affairs, Enel North America, Inc. (Hydropower) • Rep. James L. Oberstar (D-MN), Chairman, House Transportation and Infrastructure Committee • Dick Munson, Vice President for Government Affairs, Recycled Energy Development (Energy Efficiency) • James Connolly, Executive Director, Anacostia Watershed Society • Gordon Davidson, Washington Office of BRI Energy (Biofuels) • Andrew Fahlund, Vice President for Conservation, American Rivers • Rep. Greg Walden (R-OR) • Marian Orfeo, Director of Planning and Coordination, Massachusetts Water Resource Authority • Rep. Roscoe Bartlett (R-MD) • Kenneth Reckhow, Professor and Chair of Environmental Sciences and • Mayor John Hieftje, Ann Arbor, Michigan, issued Green Energy Policy, Nicholas School of Environment and Earth Sciences, Duke Univ. Challenge (2005) to bring 30% renewable energy to Ann Arbor by 2010 • Richard Schwer, Senior Consultant, Environmental Engineering, DuPont Company Harvesting the Farm Bill for Energy Security and • Alan Vicory, Executive Director and Chief Engineer, Ohio River Valley Climate presented in cooperation with the 2020 Vision Water Sanitation Commission Education Fund and the offices of Sen. Richard Lugar (R-IN) and Sen. Joe Biden (D-DE) – June 15 Ecosystem Thresholds and Climate Tipping Points: • Eldon Boes, Senate Agriculture Committee Implications for Policymakers – September 20 • Dr. Elizabeth Marshall, World Resources Institute • Dr. Anthony Janetos (Moderator), Director, Joint Global Change Research Institute, Pacific Northwest National Laboratory/University of • Howard Learner, Director, Environmental Law and Policy Center Maryland • Scott Faber, Water Resources Specialist, Environmental Defense • Dr. Ed Miles, Virginia and Prentice Bloedel Professor of Marine Studies • Tom Z. Collina, Exec. Director, 2020 Vision Education Fund (Moderator) and Public Affairs, University of Washington • Dr. Neil Cobb, Director, Merriam-Powell Center for Environmental Can a National Renewable Portfolio Standard Research, Northern Arizona University Increase Energy Security, Reduce Emissions and • Dr. Mark Eakin, Coordinator, NOAA Coral Reef Watch, National Lower Costs? – July 11 Oceanic and Atmospheric Administration • Dr. John Wiens, Lead Scientist, The Nature Conservancy • Leon Lowery, Majority Staff, Senate Committee on Energy and Natural Resources • Michael Bradley, Canfor Pulp Limited Partnership

Environmental and Energy Study Institute—2007 Annual Report Page 11

What Does the Stern Review Mean for the UN New York State Public Service Commission and Maine Public Utilities Commission; and former Commissioner, U.S. Nuclear Regulatory Climate Change Meeting in Bali? – September 21 Commission • Sir Nicholas Stern, Professor of Economics, London School of • Jerry Taylor, Senior Fellow, Cato Institute Economics Asia Research Centre and author of the “Stern Review on the Economics of Climate Change” • Jim Harding, CEO, Harding Consulting • Susan J. Irving, Director for Federal Budget Analysis, US Government National and International Perspectives on Energy Accountability Office (GAO) and Climate Policy: A Roundtable Discussion – September 25 Opportunities for Bioenergy Production in Every State – October 31 • James Cameron, Founder, Climate Change Capital; Treasurer, REEEP; Founding Associate, REIL (Moderator) • Larry Biles, Executive Director, Southern Forest Research Partnership • Rep. Tom Udall (D-NM) • Robert H. Davis, President, Forest Energy Corporation/Member, Future Forest, LLC • Rep. Jay Inslee (D-WA) • Dr. David Bransby, Professor of Energy Crops and Bioenergy, Auburn • Bob Simon, Chief of Staff, Senate Energy and Natural Resources University Committee • Suedeen Kelly, Commissioner, Federal Energy Regulatory Commission • Paul Dawson, Head of Environmental and Regulatory Affairs, Global Commodities, Citi • Jim Butcher, Director, Office of the Environment, Morgan Stanley • Henry Derwent, Director, International Climate Change, U.K. Department of Environment, Food and Rural Affairs; Chair, REEEP Governing Board

The Daily Transit Pass: One of the Most Powerful Weapons to Combat Global Climate Change – September 26 • Rep. James L. Oberstar, (D-MN), Chairman, House Transportation and Infrastructure Committee • Robert E. Cleaves, President, Cleaves and Company/Member, USA • Rep. Peter A. DeFazio, (D-OR), Chairman, Highways and Transit Biomass Power Producers Alliance Subcommittee, House Transportation and Infrastructure Committee • William W. Millar, President, APTA • Greg Nickels, Mayor of Seattle, Chair of the Advisory Board and Co- Can States Meet the Proposed 15% National Chair of the Task Force on Climate Protection, U.S. Conference of Renewable Portfolio Standard? – November 1 Mayors • Leon Lowery, Majority Staff, Senate Committee on Energy and Natural • Todd Davis, Assistant Vice President, Science Applications International Resources Corporation (SAIC) • Chris Namovicz, Operations Research Analyst, Energy Information • Carol Werner, Executive Director, Environmental and Energy Study Administration Institute (Moderator) • Dr. Marie Walsh, Adjunct Associate Professor, Dept. of Agricultural Economics, University of Tennessee Solar Decathlon Showcases Green Homes for • Jeff Deyette, Energy Analyst, Union of Concerned Scientists Today: How Energy Bill Provisions Can Support High-Performance Homes – October 17 • Bill Prindle, Deputy Director, American Council for an Energy-Efficient Economy • Rhone Resch, Executive Director, Solar Energy Industries Association • Dr. Kaye Brubaker, Associate Professor, University of Maryland Green Collar Jobs: Why Renewable Energy and • Bill Nesmith, Assistant Director for Conservation, Oregon Department of Energy Efficiency are Economic Powerhouses – Energy November 8 • Lowell Ungar, Director of Policy, Alliance to Save Energy • Sen. Ken Salazar, (D-CO), Member, Senate Energy and Natural Resources, Agriculture, Nutrition and Forestry, and Finance Committees Loan Guarantee Provisions in the 2007 Energy • Brad Collins, Executive Director, American Solar Energy Society Bills: Does Nuclear Power Pose Significant • Drew McCracken, Director, Washington Office of the State of Ohio Taxpayer Risk and Liability? – October 30 • Roger Bezdek, Ph.D, President, Maagement Information Services, Inc. • Peter Bradford, President, Bradford Brook Associates; former Chair,

Page 12 Environmental and Energy Study Institute—2007 Annual Report

Environmental and Energy Study Institute Statement of Financial Position December 31, 2007 2007 ASSETS

CURRENT ASSETS

Cash $ 354,520 Interest receivable 7,955 Grants and contributions receivable 231,267 Prepaid expenses 16,359

TOTAL CURRENT ASSETS 610,101

INVESTMENTS 2,577,089 PROPERTY AND EQUIPMENT, net 9,395 DEPOSITS 16,049

TOTAL ASSETS $ 3,212,634

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES

Accounts payable and accrued expense $ 14,122 Accrued vacations 57,787

TOTAL CURRENT LIABILITIES 71,709

NET ASSETS

Unrestricted 2,659,571 Temporarily restricted 481,354

TOTAL NET ASSETS 3,140,925

TOTAL LIABILITIES AND NET ASSETS $ 3,212,634

Environmental and Energy Study Institute—2007 Annual Report Page 13

Environmental and Energy Study Institute Statement of Activities For the Year Ended December 31, 2007

Temporarily Unrestricted Restricted Total

REVENUE

Grants and contributions $ 587,236 $ 327,484 $ 914,720 Earth Share 68,985 68,985 Investment income 140,042 140,042 Net assets released from restrictions 191,520 (191,520) -0-

TOTAL REVENUE 987,783 135,964 1,123,747

EXPENSES

Programs Transportation/Smart Growth 187,683 187,683 Energy and Climate Change 419,665 419,665

Total Programs 607,348 607,348

General and administrative 100,551 100,551 Development 47,159 47,159

TOTAL EXPENSES 755,058 755,058

CHANGE IN NET ASSETS 232,725 135,964 368,689

NET ASSETS, BEGINNING OF YEAR 2,426,846 345,390 2,772,236

NET ASSETS, END OF YEAR $ 2,659,571 $ 481,354 $ 3,140,925

Page 14 Environmental and Energy Study Institute—2007 Annual Report

Funders

Environmental and Energy Study Institute wishes to thank all those who have made contributions this year. We are extremely grateful for your support. You have helped us build a better world.

Grants and Contracts American Planning Association (APA) and the Surdna National Hydropower Association Foundation New York Community Trust Changing Horizons Fund Oak Foundation City of Austin, Texas Ottinger Foundation Cornell Douglas Foundation Salt Lake City Utah Clean Cities Energy Foundation US Fuel Cell Council George Gund Foundation Wallace Genetic Foundation Gordon and Betty Moore Foundation Water Environment Federation ICSE

EESI Associates Benefactors ($10,000 +) Dr. John W. Flory Foundation Austin Energy Services Roger and Vicky Sant Dynamotive Energy Systems Corporation TAUPO Fund

Patrons ($5,000-9,999) The Coca – Cola Company Ormat Technologies Horne Family Foundation The Schmitz-Fromherz Family Fund

Associates ($1,000-4,999) ALLETE/Minnesota Power Cynthia Edstrom American Council on Renewable Energy Environmental and Turf Services Elizabeth Berman Jeff Genzer Bob Lawrence & Associates Geothermal Energy Association Boggess Family Foundation John Harris Jason Brenner The Henry P. Kendall Foundation Michele Brandt Jay Kunwar Michael Brower John "Skip" Laitner Frances S. Buchholzer National Biodiesel Board Mortimer Caplin Richard Ottinger Classic Accessories PIMA C.R. Craig Solar Energy Industries Association Mary De Voe United Nations Foundation

EESI receives donations through Earth Share, a workplace giving federation of the leading environmental and conservation organizations. We also receive many smaller gifts from individuals across the country.

Environmental and Energy Study Institute—2007 Annual Report Page 15

EESI Board of Directors EESI Staff Richard L. Ottinger, * EESI Board Chair; Dean Emeritus, Carol Werner, Executive Director Pace University School of Law; former Member of Congress (D-NY) Fred Beck, Senior Policy Associate (Energy & Climate)

John J. Sheehan, * EESI Board Vice Chair; former Legislative Jesse Caputo, Fellow (Sustainable Biomass & Energy) Director, United Steelworkers of America Ruth Lampi, Director of Development Leanne Lamusga, Communications Coordinator Jared Blum, * EESI Secretary/Treasurer, President, Polyisocyanurate Insulation Manufacturers Assoc. (PIMA) Jan Mueller, Policy Analyst (Transportation & Energy) Deirdre Nicholson, Executive Assistant Nancy Bacon, Senior Vice President, Energy Conversion Jessica Siegel, Director of Finance and Administration Devices, Inc. Jetta Wong, Senior Policy Associate (Sustainable Biomass & Energy) Ambassador Richard E. Benedick, Senior Advisor, Joint Global Change Research Institute, Battelle Pacific Northwest National Laboratory (PNL); former Deputy Assistant Secretary of State for Environment, Health, and Natural Resources EESI Board of Advisors Rosina M. Bierbaum Ph.D., Dean, School of Natural James Barrett, Redefining Progress Resources and Environment, University of Michigan; former Acting Lester R. Brown, Earth Policy Institute Director, White House Office of Science and Dr. Marilyn Brown, Georgia Institute of Technology Quincalee Brown, former Executive Director, Water Donna W. Wise Buckley, Environment Federation Tom Buis, National Farmers Union Ken Colburn, Symbiotic Strategies, LLC Frances S. Buchholzer, former Director, Ohio Department of Ken Connolly, Goldman Sachs Natural Resources Milt Copulos, National Defense Council Foundation Bruce Dale, Michigan State University Mortimer M. Caplin, Founder and Partner, Caplin and John E. Echohawk, Native American Rights Fund Drysdale; former Commissioner, Internal Revenue Service Helen English, Sustainable Buildings Industry Council Gerald Decker, Chair, Decker Energy International Shelley Fidler, Van Ness Feldman Attorneys at Law Development, Inc.; Chair, Competitive Power Forum Karl Gawell, Geothermal Energy Association Glenn Hamer, Arizona Chamber of Commerce and Industry Roger Duncan, General Manager, Austin Energy Services Bill Holmberg, Biomass Coordinating Council John Justus, Ocean Science Specialist Bob Edgar, President and CEO, Common Cause; former Stephen S. Kalland, North Carolina Solar Center General Secretary, National Council of Churches; former Member Mike Lindberg, Fleishman-Hillard of Congress (D-PA) Michael MacCracken, Climate Institute Chris Flavin, President, Worldwatch Institute Joseph Michels, Princeton University Rhone Resch, Solar Energy Industries Association Elliott Laws, Crowell and Moring; former President of Safety, Roger Sant, Co-founder and Chairman Emeritus, The AES Corp. Health and Environment for Texaco Jeff Seabright, The Coca – Cola Company John Seiberling, former Member of Congress Ruth Patrick, Ph.D. Senior Curator, Academy of Natural Beth Shearer, Beth Shearer and Associates, Inc. Sciences of Philadelphia Scott Sklar, The Stella Group, Ltd Christopher Schepis, Legislative Director, Office of Paul Thomsen, Ormat Technologies Congressman John Barrow (GA 12th) Scott A. Weiner, New Jersey School’s Development Authority Jon Wellinghoff, Federal Energy Regulatory Commission

Page 16 Environmental and Energy Study Institute—2007 Annual Report